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initially granted extensions to October 15, 1989, for filing
their 1988 return. The additional request for extension was not
signed by petitioners until August 15, 1990, 10 months after the
initial extensions had expired. Even if petitioners’ August 15,
1990, request had been mistakenly approved by the IRS,
petitioners could not have relied on it as permission for the
late filing. The 10-month period during which they did not have
an outstanding extension justifies the section 6651(a)(1)
addition to tax for 1988. See sec. 1.6081-4(a)(3), Income Tax
Regs. (application for extension must be filed on or before the
date that the return was required to be filed).
1989
Petitioners requested and received an extension to file
their 1989 return. An extension of time to file does not extend
the time for payment of any tax due, and the form must “be
accompanied by the full remittance of the amount properly
estimated as tax which is unpaid as of the date prescribed for
the filing of the return.” Sec. 1.6081-4(a)(4), Income Tax Regs.
Respondent may properly void an extension where the application
is invalid because of a failure to estimate properly a tax
liability. Crocker v. Commissioner, 92 T.C. 899, 905 (1989). An
underestimation, however, does not make an extension application
per se invalid. Id. at 906.
Petitioners did not produce at trial any evidence of how
they calculated their tax liability for 1989 when making their
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